Zhongxin Finance, May 5. On the 5th, the Hong Kong Monetary Authority announced that it will increase the base interest rate by 50 basis points, and the base interest rate will be raised to 1.25% according to the preset formula, with immediate effect.
The Monetary Authority of Macau also announced that the discount window base rate will be raised by 50 basis points to 1.25%.
The Hong Kong Monetary Authority stated that the base rate is the base rate used to calculate the discount rate to be applied when repurchasing transactions through the discount window.
The base rate is currently set at the lower end of the current target range for the US federal funds rate plus 50 basis points, or the average of the 5-day moving averages of overnight and 1-month HIBOR, whichever is higher.
The Hong Kong Monetary Authority stated that since the United States raised the target range of the federal funds rate by 50 basis points on May 4 (US time), the current lower limit of the target range of the US federal funds rate plus 50 basis points is 1.25%, while overnight and 1 The average of the 5-day moving average of the monthly HIBOR is 0.11%, so according to the default formula, the base rate is set at 1.25%.
The Macau Monetary Authority stated that since the pataca is pegged to the Hong Kong dollar, the policy interest rate changes in the two places must be basically the same to maintain the effective operation of the Hong Kong-Macao linked exchange rate system.
Therefore, the Macau Monetary Authority follows the Hong Kong Monetary Authority to adjust its base rate.
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